Rs 200 LPG price cut on oil companies, government unlikely to give subsidy

Bumper earnings in the first five months of the current fiscal and international benchmark coming off its highs will help state-owned oil companies absorb the Rs 200 per cylinder cut in cooking gas LPG prices, sources said indicating there may be no government compensation for that. On Tuesday, the government announced a Rs 200 per cylinder cut in prices of domestic cooking gas to soften the impact of rising inflation on households as well as counter the promise of cheaper LPG made by the Congress party in upcoming assembly elections.